This article urges a rethink of luxury marketing, as western societies change and make mass-marketing less relevant, while other countries have different approaches to hierarchy. View Summary

This article urges a rethink of luxury marketing, as western societies change and make mass-marketing less relevant, while other countries have different approaches to hierarchy.

Luxury marketing is often dismissed and perceived as niche and irrelevant, but this is changing as technology makes culture more individualised and companies want to expand their top-tiers for greater profitability.

Research found that national and cultural values are more important than economic indicators in determining what 'luxury' means.

This led to four distinct models of 'luxury': the power of prestige, democratised performance, graceful utility, and refined beauty aesthete.

2

PepsiCo’s shopper strategy looks beyond millennials

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Stephen Whiteside, Event Reports, The Market Research Event, October 2014

This event report discusses why PepsiCo, the food and beverage group, is avoiding the temptation of solely focusing on millennials. View Summary

This event report discusses why PepsiCo, the food and beverage group, is avoiding the temptation of solely focusing on millennials.

Despite the attractiveness of this demographic, it cannot drive growth for every single product on the shelf. While many PepsiCo brands, like Doritos, Gatorade and Mountain Dew, have long focused on younger consumers, offering like Tropicana and Quaker Oats skew slightly older.

The preferences of certain age-groups frequently correspond with other key customer metrics, meaning millennials and high-income shoppers have a lot in common, as do Boomers and low-income shoppers.

Digging deep into these attitudes and behaviours of these consumers has allowed PepsiCo to distinguish different day parts, missions and "macro spaces".

3

Sharing and owning: The rise of the hybrid consumer

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Vincent Rousselet, Market Leader, Quarter 4, 2014

This article discusses the rise of the 'hybrid' consumer and explores the underlying trends that are driving this development. View Summary

This article discusses the rise of the 'hybrid' consumer and explores the underlying trends that are driving this development.

The emerging 'hybrid' consumers are happy to spend heavily on the latest Apple product but also to save money on their weekly shop by going to discounters such as Lidl and Aldi.

At the same time, the 'sharing economy' has seen a rise in enthusiasm for products and services available to rent, rather than to own.

This new consumer landscape, which combines previously separate behaviours such as embracing rental with ownership and luxury with austerity, calls for new kinds of segmentation.

4

Why being pragmatically political is the only way to grow brands in the digital age

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Charlie Ebdy, Admap, Commended, The Admap Prize, June 2014, pp. 40-42

This essay argues that in order to survive in the digital era brand must become pragmatically political. View Summary

This essay argues that in order to survive in the digital era brand must become pragmatically political. This follows massive cultural change which has followed the rise of digital communications and hurt the global middle classes. These groups of consumers are finding their jobs under threat and consuming power squashed, leading to changes in shopping behaviour and priorities. In order to survive brands should assume a social role that helps to protect the ability of consumers to keep buying their products. There are four ways in which brands can react to a reduction in consumer purchasing power: embrace communities, invest in customers, encourage better decisions and emphasise sustainability.

5

Driving down the cost of conversion for Advance America: Adometry and Erwin Penland

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Warc Exclusive, May 2014

This article describes how an ad agency and an ad verification company partnered to drive down cost per conversion for Advance America, a payday loans company, and attract new customers, without increasing budget. View Summary

This article describes how an ad agency and an ad verification company partnered to drive down cost per conversion for Advance America, a payday loans company, and attract new customers, without increasing budget. Analytics were used to examine ad viewability and attention signals, with ad server tags alone inadequate measures. Goals were achieved by eliminating ads being placed on brand-damaging sites, optimising campaigns by geography and audience segmentation, and reducing media buy overlaps.

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Rediscovering the lost art of interpretation: Insights from American Express

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Geoffrey Precourt, Event Reports, 4A's Transformation, March 2014

This article discusses the need for brands and agencies to hone the skills of interpretation, which is essential if they are to translate information and insights into distinctive products and marketing campaigns. View Summary

This article discusses the need for brands and agencies to hone the skills of interpretation, which is essential if they are to translate information and insights into distinctive products and marketing campaigns. American Express utilised this approach after hundreds of its staff members "walked in the shoes" of customers who are effectively excluded from the financial services sector. As a result, it decided that the ability to move and manage money should be seen as a right, not as a privilege. In response, it created two pre-paid accounts, which together have helped reduce the level of debt generated by traditional credit cards, and built engagement with a group of consumers often ignored by brands.

7

Family Dollar solves the value equation: Quality, social recommendation and local understanding

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Stephen Whiteside, Event Reports, IRI Summit, March 2014

This event report explains how for Family Dollar, the US discount retailer, 'value' is more about quality and experience than price. View Summary

This event report explains how for Family Dollar, the US discount retailer, 'value' is more about quality and experience than price. Despite a low-income customer profile, research has found that Family Dollar's customers focus on product quality and reliability in purchasing decisions as they cannot afford to take a risk on products that may not work. These consumers also value a personal touch when shopping, such as being known by name in stores they visit regularly. Word of mouth is an important focus for the company's marketing efforts as customers increasingly rely on recommendation, especially through social media: around 45% of Family Dollar customers rely on feedback from friends and family for even low-cost purchases.

This event report describes how Capital One, the credit card company, conducted a real-time marketing campaign - informed by data and analytics - during the 'March Madness' basketball championship in the US. A Twitter hashtag was added to television ads in order to help stimulate the conversation, which Capital One then engaged with. Graphic artists and sports writers were recruited to produce content to be distributed in real-time, with forward planning meaning clearance rights from the relevant organisations had already been obtained. On Twitter, the company offered prizes for people who participated, and maintained a leaderboard of the teams people were tweeting about. An influencer strategy included interacting with celebrities who were posting about basketball, and establishing a relationship with three popular bloggers, each with a different target audience. The company was able to measure the success of this campaign against established internal benchmarks, finding that a real-time approach allowed it to far exceed these.

9

Finding faster growth: Changing Chinese attitudes towards food

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Michael B. Griffiths and Chris McCarthy, TNS, December 2013

This report examines how the emerging middle class in China use food to define themselves. It is argued that as Chinese people gain disposable income they will spend the majority of this on food and drink. View Summary

This report examines how the emerging middle class in China use food to define themselves. It is argued that as Chinese people gain disposable income they will spend the majority of this on food and drink. This is because food is the most accessible luxury item, allowing people just leaving poverty to indulge. Eating is considered a social activity in China with rituals and habits attached. Food can also be used to display wealth, and maintaining links across generations. Brands should be aware that consumers are increasingly choosing Chinese equivalents to Western brands, and build brand messages that appeal emotionally.

This event report looks at qualitative research conducted by Procter & Gamble as it sought to understand Chinese consumers living on less than $2 per day. View Summary

This event report looks at qualitative research conducted by Procter & Gamble as it sought to understand Chinese consumers living on less than $2 per day. The firm discovered that quantitative studies can sometimes be misleading, as shown by the gap between the number of people who own a washing machine and those that had a water supply allowing them to use it. Further "myths" included the assumptions that cheap products would automatically be preferred, that authority figures lacked influence, and that low-income consumers would have a limited input when it came to talking about potential innovations.

This report describes the development of 'Brand India', considering central coordination of marketing by the government, the effect of economic development - with particular attention paid to the IT industry, and the role of tourism. View Summary

This report describes the development of 'Brand India', considering central coordination of marketing by the government, the effect of economic development - with particular attention paid to the IT industry, and the role of tourism. India's high growth rate and large outsourcing industry has attracted international business attention: this was built on at Davos in 2006 with a large marketing campaign. The 'Incredible !ndia' campaign, a tourism marketing campaign that ran over several years, is also described. In 2013 India faces several challenges: slowing growth has dampened excitement about the country, with the domestic consumer market impacted by inflation. Investment and growth are expected to continue, but future marketing efforts should focus on credibility.

12

Luxury brand marketing: Socially affluent

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Steve Yi, Admap, November 2013, pp. 36-37

This article argues that Twitter is more useful than Facebook for targeting luxury brand consumers through social media, as it allows a more personalised approach. View Summary

This article argues that Twitter is more useful than Facebook for targeting luxury brand consumers through social media, as it allows a more personalised approach. LinkedIn and Facebook are both mass communication methods. If luxury brands target affluent consumers through these channels, they risk alienating people who aspire to the brand. Twitter and similar platforms allow personal communication and increase access to staff members who can provide information and services to affluent consumers.

13

Mythbuster: Stereotypes about grandparents

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Les Binet and Sarah Carter, Admap, September 2013, pp. 9-9

This article criticises the lack of attention paid to grandparents in the UK, US and Europe as they take on greater responsibility for their grandchildren. View Summary

This article criticises the lack of attention paid to grandparents in the UK, US and Europe as they take on greater responsibility for their grandchildren. People are now becoming grandparents younger, and staying grandparents for a longer proportion of their lives. At the same time grandparents are increasingly supporting their children with childcare. This article argues that grandparents represent an under-utilised marketing opportunity for goods relating to children, including food, toys, health and holidays.

This paper analyses the state of midlife women, aged 45-64 years old, around the world. The proportion of midlife women is highest in mature markets but by total numbers, most live in China and India. View Summary

This paper analyses the state of midlife women, aged 45-64 years old, around the world. The proportion of midlife women is highest in mature markets but by total numbers, most live in China and India. While there are increasing proportions of women in paid employment, they still do not earn pay equal to men and many value time as much as work. The presentation also includes charts that cover midlife women's desire to try new products and services, political representation and celebrity influences.

15

How to justify 'premium' for the emerging affluent Chinese consumers?

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Sirius Wang and Troy Hakansson, Millward Brown Asia, Point of View, April 2013

This article examines the rise of the affluent class in China - the top third of the population by income - and how marketers can engage with them. View Summary

This article examines the rise of the affluent class in China - the top third of the population by income - and how marketers can engage with them. It examines whether brands can provide unique functional and emotional values to meet more than just the basic functional demands of consumers to effectively balance "high premium" and "high attractiveness" and become a "justified premium brand". Only 7% of the 600 brands in Millward Brown’s 2011 and 2012 BrandZ Chinese database earn this label, with loyalty driven by their dynamism and salience. These brands are influential in their innovation and media communication, and seen as being creative, in control, assertive and trustworthy. To achieve this status, a brand should grasp relevant market opportunities and position itself accurately, avoiding a positioning that is too extreme while maintaining uniqueness. Examples of brands that have achieved this are Septwolves, a men's apparel brand, and Blue Moon, a laundry care brand.

16

The emergence of the Indian mid-life crisis

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Kartikeya Kompella, Warc Exclusive, April 2013

This article looks at the recent development of mid-life crises among Indian men. It covers the changes in Indian society that have led to men in their forties feeling a lack of satisfaction in their lives, primarily through increased wealth, time and a stronger sense of individuality. View Summary

This article looks at the recent development of mid-life crises among Indian men. It covers the changes in Indian society that have led to men in their forties feeling a lack of satisfaction in their lives, primarily through increased wealth, time and a stronger sense of individuality. The article suggests ways that brands can help men negotiate this time of life, including alleviating boredom with tailored holiday packages and creating apparel ranges that appeal specifically to this group. Employers are advised to pay particular attention to this group to prevent unhappiness in the workplace, leading to the loss of experienced and key personnel.

17

Introducing American Boomers: Marketing's most valuable generation

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Nielsen, April 2013

This presentation suggests marketing methods to better access the US Boomer generation, and includes examples from Diamond Foods, Walgreens and Depend. View Summary

This presentation suggests marketing methods to better access the US Boomer generation, and includes examples from Diamond Foods, Walgreens and Depend. The Boomers represent a massive opportunity for marketers. Boomers represent 50% of dollar spend and 35% of the US population, but only 10-15% of advertising spend is targeted at them. In five years time Boomers will control 70% of US disposable income. Boomers are increasingly moving towards technology, including social media, online shopping and watching television.

18

Older people, newer strategies

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Pathamawan Sathaporn, Mindshare, Original Thinkers, March 2013

This article looks at marketing to segments of the aging population group (age 55+) in Thailand, where birth rates and life expectancy are increasing. View Summary

This article looks at marketing to segments of the aging population group (age 55+) in Thailand, where birth rates and life expectancy are increasing. The urban segment is more information driven (high digital media and newspaper consumption), while in rural areas where income levels are lower, there is higher consumption of television. There is no one particular 'prime time' moment for communication, as they have the time and the money to do as they please. The older the target, the more proof they demand before believing what they hear or see; equally, they care about product quality over price.

19

Media leverage: How Unilever is engaging Asia's middle class

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Low Lai Chow, Event Reports, Festival of Media Asia, March 2013

This report covers an address by Unilever’s Rahul Welde, in which he discusses the growth of megacities and the middle class in Asia, and the steps that Unilever is taking to engage this new demographic. View Summary

This report covers an address by Unilever’s Rahul Welde, in which he discusses the growth of megacities and the middle class in Asia, and the steps that Unilever is taking to engage this new demographic. He sees an opportunity for marketers to tap into a vast new audience, increase product usage among existing customers and optimise targeting across a fragmented marketplace. When discussing media, he outlines four areas in which Unilever is leveraging its activities to maximise performance: data, mobile, content and partnerships.

This future-themed presentation explores various "megatrends" including globalisation, the emerging middle class and an ageing population. View Summary

This future-themed presentation explores various "megatrends" including globalisation, the emerging middle class and an ageing population. It also identifies key technology and communication trends such as mobile devices and personalised engagement. 3D printing, behavioural science and big data are discussed. The presentation concludes by identifying some of the industries likely to be transformed by this new and so-called disruptive technology.

Four years on from the global financial crisis, economists are suggesting that rich economies may have to learn how to live in a world of low growth. View Summary

Four years on from the global financial crisis, economists are suggesting that rich economies may have to learn how to live in a world of low growth. Themes, or headwinds, of low-growth societies include an ageing population, an unequal society, a larger service sector, a debt overhang and higher energy prices. However, there are growth opportunities to be found. These can be tapped using strategies that include: looking for markets where the headwinds are weaker, such as in Poland or Italy; following the money as demographics change (e.g. older consumers are wealthier and will be looking for "bridge jobs" that will ease them into retirement); reducing energy costs; rescaling innovation; and reducing costs by providing more personalised services.

China and India offer lucrative opportunities for corporations as rapid growth raises incomes and, in turn, demand for goods. With the size of the Chinese middle class set to double to 202m by the year 2020, and India’s middle class increasing to 117m in the same time frame, companies stand to profit from an estimated $10 trillion of consumer spending, according to the authors of The $10 Trillion Prize. The book offers a detailed examination of the changing economies of China and India with a special emphasis on the emerging middle class. It gives insights into the cultural, educational and historical influences on these new consumers and offers practical advice on how businesses can make the most of these burgeoning markets.

23

Demographic Group: Baby Boomers

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Jessica Letizia, ARF - Knowledge at Hand, January 2013

This summary from the Advertising Research Foundation looks at the Baby Boomer demographic group - those born between 1946 and 1964. View Summary

This summary from the Advertising Research Foundation looks at the Baby Boomer demographic group - those born between 1946 and 1964. It is estimated that making up 44% of the US adult population, the Baby Boomer spending power in the US is over $2 trillion and it now spends more money on technology than any other demographic. Boomers' increasing presence of free time is driving their heavy media consumption and are now the second heaviest users of the internet, with strong presence on social media.

24

More guilt attached to spending

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Josie Farnsworth, Global TGI, Dispatches 11, January 2013

The middle-class is feeling increasingly guilty about spending on non-essentials, a shift most marked in Western nations, where TGI notes the emergence of a bargain-hunter mentality in the UK and US. View Summary

The middle-class is feeling increasingly guilty about spending on non-essentials, a shift most marked in Western nations, where TGI notes the emergence of a bargain-hunter mentality in the UK and US. In successful emerging markets the picture is different, with middle-class Indian and South African consumers significantly more likely to spend without thinking and those in Brazil and Egypt more likely to pay extra for quality. And while all markets have seen a decline in brand loyalty, the most loyal consumers are to be found among the middle-class in Brazil and China. Potential opportunities exist in developed markets for a positioning that removes the idea of treating, and its association with guilt, in favour of more positive emotions. Although developing markets are more open to price premiums, consumers are fickle in many countries and a premium positioning will require constant evolution.

25

Contemporary lustre: Marketing luxury brands in India

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Melanie Puddick and Priya Menon, WPP Atticus Awards, Merit, 2012

Wealthy Indians represent a source of enormous potential for global luxury brands, according to the authors of this paper. View Summary

Wealthy Indians represent a source of enormous potential for global luxury brands, according to the authors of this paper. It draws upon insights into the luxury market in India that will give a critical analysis of the motivations of the luxury consumer; these insights, the authors argue, will help luxury brands to develop effective targeting strategies that will unlock the massive potential of Indian luxury. The insights include: that there are big regional differences within the subcontinent; that high-end brands still need to respect the value-consciousness ingrained into Indian society; that a particular respect is reserved for exotic and hand-crafted goods; that views about western luxury brands are mixed; and that Indians tend to be less materialistic than their counterparts in western nations. The paper goes on to discuss several Indian luxury consumer typologies.